November 13, 2018, 6:27 am

Importance of using mind map in Forex market

by: The Financial Blogger    Category: Investment, Market and Risk,Trading
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Mind map is the diagram that we use to plan our strategy. If you are trading in Forex, you also should use a mind map because it gives you more ways to plan your strategy. There are many strategies but you should not use them in the form they reach to you. Try to develop them, and use them in a demo account to see the result. If you din they are not giving profit, you need to plan them again and trade on demo accounts. If you find they are giving you money, you still need to work on them to make them better. This industry never stops and you also need to change your plan. The mind map is the best way you can plan your strategy for future trends. You do not need any software but your diary and your mind to plan the strategy. Many professional traders use mind map because they want to trade money without losing. It is only possible when you think of all the risks and has planned your trades.

Psychological factors in Forex trading profession

Everyone wants to become a successful trader. But if you do some research, you will be surprised to know the majority of the traders in the United Kingdom is struggling hard. The new traders start their trading career without having a proper knowledge of this market. In their subconscious mind, they always think about the profit factors. This eventually forces them to overtrade the market. You need to have to caliber to control your subconscious mind or else it will be really hard for you to make a profit from this market.

So how do you develop your mentality? First of all, try to keep things clean in your trading platform. Overloading your charts with indicators and EAs is not going to help you. You should rely on a simple trading strategy and focus on the long-term market trend. Try to limit your risk factors by reducing the lot size in each trade. Train your mind to spot the best trades from the very beginning.

How does mind map work?

You may want to know how this mind map works. It is simple and it takes the imaginary form in your mind and uses them to give ideas. If you are thinking to place trade but you do not know what will be the outcome, you need to make a mind map. Imagine a trend where you should place your trades and think of all the strategy. You need to make a plan where to set the stop-loss if the trends go against you, you also need to set the position size so that you are not making a small amount of profit with a good trend and you also need to plan when you should close the trades. This is all possible in mind map. It is also possible to plan this in your mind but when you start giving them form, they become more efficient and you can find out the mistakes. If you have started your trading, it is better if you draw out plans in your diary. Make mind map for every trades and this way you will know if your trades are not working out. Do not think you will make a great plan but make a demo plan. Every time you mind map your trade, it gets better with time.

Is mind mapping necessary?

It is good for your trades. You cannot make money like the other traders and you need to be different. The mind map will give you a chance to make a master plan and place your trades with the right strategy. You should leave any chance and try mind mapping your plan. If you can map all the risks, your chance of losing money will get decreased. It helps to make your strategy better in Forex.

 

Image source: Pixabay

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